**Joint Production Cost Allocation** In a joint production process that cost $240,000, two main products and one by-product are generated. Here are the specifics: - **P1**: 15,000 units, sold at the split-off point for $300,000. - **P2**: 25,000 units, sold at the split-off point for $200,000. - **By-product**: Sold for $30,000. **Questions** 7. **Using the net realizable value method, how much of the joint costs would be allocated to P1?** a. $120,000 b. $144,000 c. $156,000 d. $183,000 8. **Using the physical quantities method, how much of the joint costs would be allocated to P1?** a. $90,000 b. $120,000 c. $150,000 d. $180,000 9. **If the sale value of the by-product is deducted from the joint costs of the main products, how much is P1's share of the total costs?** a. $126,000 b. $216,000 c. $156,000 d. $184,000 10. **The relevant data for deciding whether to process further are:** a. Additional revenue after further processing b. Joint costs c. Additional costs of processing further d. Both a and c 11. **Which of the following is not a service department?** a. Human resources b. Accounting c. Mailroom d. Production **ASSIGNMENT SUBMISSION** When finished, make sure to click Submit. Optionally, click Save as Draft to save changes and continue working later, or click Cancel to quit without saving.
**Joint Production Cost Allocation** In a joint production process that cost $240,000, two main products and one by-product are generated. Here are the specifics: - **P1**: 15,000 units, sold at the split-off point for $300,000. - **P2**: 25,000 units, sold at the split-off point for $200,000. - **By-product**: Sold for $30,000. **Questions** 7. **Using the net realizable value method, how much of the joint costs would be allocated to P1?** a. $120,000 b. $144,000 c. $156,000 d. $183,000 8. **Using the physical quantities method, how much of the joint costs would be allocated to P1?** a. $90,000 b. $120,000 c. $150,000 d. $180,000 9. **If the sale value of the by-product is deducted from the joint costs of the main products, how much is P1's share of the total costs?** a. $126,000 b. $216,000 c. $156,000 d. $184,000 10. **The relevant data for deciding whether to process further are:** a. Additional revenue after further processing b. Joint costs c. Additional costs of processing further d. Both a and c 11. **Which of the following is not a service department?** a. Human resources b. Accounting c. Mailroom d. Production **ASSIGNMENT SUBMISSION** When finished, make sure to click Submit. Optionally, click Save as Draft to save changes and continue working later, or click Cancel to quit without saving.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Joint Production Cost Allocation**
In a joint production process that cost $240,000, two main products and one by-product are generated. Here are the specifics:
- **P1**: 15,000 units, sold at the split-off point for $300,000.
- **P2**: 25,000 units, sold at the split-off point for $200,000.
- **By-product**: Sold for $30,000.
**Questions**
7. **Using the net realizable value method, how much of the joint costs would be allocated to P1?**
a. $120,000
b. $144,000
c. $156,000
d. $183,000
8. **Using the physical quantities method, how much of the joint costs would be allocated to P1?**
a. $90,000
b. $120,000
c. $150,000
d. $180,000
9. **If the sale value of the by-product is deducted from the joint costs of the main products, how much is P1's share of the total costs?**
a. $126,000
b. $216,000
c. $156,000
d. $184,000
10. **The relevant data for deciding whether to process further are:**
a. Additional revenue after further processing
b. Joint costs
c. Additional costs of processing further
d. Both a and c
11. **Which of the following is not a service department?**
a. Human resources
b. Accounting
c. Mailroom
d. Production
**ASSIGNMENT SUBMISSION**
When finished, make sure to click Submit. Optionally, click Save as Draft to save changes and continue working later, or click Cancel to quit without saving.
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